APAC Private Credit Fundraising Expected to Moderate, Moody’s Says

APAC private credit fundraising is expected to slow during the next 12 to 18 months as higher interest rates, geopolitical uncertainty and macroeconomic pressures reduce investor appetite for illiquid assets, according to Moody's Ratings.

Despite the softer outlook, the agency believes long-term demand for private credit across Asia-Pacific will remain supported by economic growth and structural financing needs.

Moody's said increased redemption requests affecting global private credit funds have prompted greater scrutiny of liquidity terms, particularly among retail and wealth management investors, which could moderate capital inflows into regional funds.

However, analyst Sean Hung said the continued withdrawal of banks from higher-risk lending should sustain demand for flexible financing solutions throughout the region.

He added that tighter regulatory oversight and stronger investor protection requirements may lengthen fundraising timelines but are likely to improve market resilience over the longer term.

The report suggests APAC private credit fundraising remains supported by favourable structural trends despite a more cautious near-term investment environment.